SGI and SaskTel report strong profits for 2023-24

SGI and SaskTel report strong profits for 2023-24
SGI and SaskTel report strong profits for 2023-24

Saskatchewan’s state-owned utilities report their annual profits this week. Both SGI and SaskTel had nothing but good news to report on the dollars and cents of their respective operations.

All in all, it was a very good year for Saskatchewan Government Insurance.

The Crown reported a profit of $78.1 million for 2023, double the previous year’s net income.

The money goes to the reserve, meaning that for the second year in a row no dividend will be paid to the government.

“The interest rate stabilization reserve acts as a savings account that protects customers from sudden rate increases,” Crown Minister Dustin Duncan told reporters. “These increases can be caused by unexpected events such as catastrophic storms.”

In its annual report, SGI attributed its net income to its “robust investment income” totaling $114.8 million, along with a mild storm season.

However, higher costs for replacement parts were also noted due to issues in the global supply chain.

SaskTel earned slightly more than SGI, at $92.5 million. That’s down about $10 million from the year before, but it’s enough to pay a $38.2 million dividend to the province.

“In 2023-24, SaskTel delivered solid operational and financial results while giving back to communities across Saskatchewan,” Duncan said.

The Crown reported an investment of $368.5 million in infiNET and 5G networks in the province.

SaskTel’s revenues consisted of revenues from wireless network services and equipment (49 percent), fixed broadband and data (23 percent), fixed communications (11 percent) and maxTV service (seven percent).

The solid financial performance means that the government no longer has a reason to sell SaskTel, as was the case seven years ago.

The province claims that SaskTel and SGI are not for sale.